Glencore to sell Australian copper mine to SPAC for US$1.1b

GLENCORE said on Wednesday (Nov 23) that blank-cheque firm Metal Acquisition Corp (Mac) has agreed to an amended agreement to buy the global miner’s Cobar copper mine in Australia in a deal valued at US$1.1 billion.

The deal’s terms include Glencore receiving US$1.1 billion, as originally agreed in a March deal, but with amended payment terms of US$775 million in cash and up to US$100 million common equity, besides other payments.

Glencore also has the right to appoint one director to MAC’s board for each 10 per cent interest it holds in the US-listed special purpose acquisition company (SPAC) from time to time, MAC said.

SPACs are shell companies that raise money in an initial public offering and put it in a trust for the purpose of merging with a private company and taking it public.

Mac said it would need to raise at least US$125 million to fund the cash component of the deal, which is expected to close in the first quarter of 2023. REUTERS